Banca Ifis SPA (IF) AI Stock Analysis

• Market Cap: €1.20B
• Dividend Yield: 8.21%
• Average Volume (3M): 124.83K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.95
• Revenue Growth: 9.92%
• EPS Growth: 0.75%
• Country: IT
• Employees: 2,013
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 53,811,096
• 10 Day Avg. Volume: 99,282
• 30 Day Avg. Volume: 124,827
• PEG Ratio: 0.12
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €25.25
• Price Target Upside: 12.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Neutral
• Price Target: ―

Banca Ifis SPA's overall stock score is driven by stable revenue growth and strong profit margins, offset by financial risks from increasing leverage and negative cash flow trends. Technical indicators show mixed signals with a slight bearish trend. However, the stock's attractive valuation provides a compelling case for investors seeking income and value.

Positive Factors

Dividend Yield

An attractive dividend is a strong part of the equity story, and will continue to be, as the dividend policy is confirmed, leading to a dividend yield of ca. 10%.

Earnings

Banca Ifis is now enjoying strong positive momentum, both in terms of earnings and future expected accretion, given the positive 1Q25 results and the ongoing VTEO.

Leadership in Specialty Finance

Banca Ifis’ voluntary exchange and tender offer for illimity will strengthen Banca Ifis leadership in specialty finance focused on SMEs.

Negative Factors

Integration Challenges

Integration challenges could erode expertise, present IT migration hurdles, and cause employment issues tied to integration costs and expected HR synergies.

Merger Challenges

It would be difficult for Banca IFIS to reach the acceptance threshold of 66.7%, control the extraordinary shareholders meeting and merge the two companies, which would put at stake the success of the offer.

Shareholder Opposition

The opposition from a group of illimity shareholders with a 27% stake in a consultation pact may prevent Banca IFIS from proceeding with the merger, limiting the synergies’ potential and putting at stake the success of the offer.

Banca Ifis SPA Business Overview & Revenue Model

Company Description

Banca IFIS S.p.A. provides credit services and solutions for enterprises. It engages in the purchase/management of non-performing loan portfolios. It offers factoring, advisory and equity investment, structured finance, leasing, and long-term financing for industrial investments. The company was founded in 1983 and is based in Mestre, Italy. Banca IFIS S.p.A. is a subsidiary of La Scogliera S.p.A.

How the Company Makes Money

Banca Ifis generates revenue through its diverse portfolio of financial services. The primary source of income comes from the acquisition and management of non-performing loans (NPLs), where the bank purchases distressed loan portfolios at a discount and seeks to optimize recovery through restructuring and collection efforts. Additionally, the commercial and corporate banking segment contributes to revenue through interest income and fees from factoring, which involves purchasing receivables from SMEs to provide them with immediate liquidity. The leasing division also adds to the company's earnings by offering financing solutions for equipment, vehicles, and real estate to businesses, generating interest and fee income. Strategic partnerships with other financial institutions and a strong focus on digital transformation further enhance Banca Ifis's ability to drive profitability and growth.

Banca Ifis SPA Financial Statement Overview

Summary

Banca Ifis SPA shows stable revenue growth with strong profit margins, but increasing leverage and negative cash flow trends pose financial risks. The company needs improvements in cash flow generation and debt management.

Income Statement

Banca Ifis SPA has demonstrated consistent revenue growth from €489M in 2020 to €661M in 2024, indicating a stable upward trend. The gross profit margin has remained strong at 100% due to the nature of banking operations. EBIT margins have been stable, maintaining around 40%, which reflects efficient operational management. However, the absence of EBITDA data for 2024 limits further analysis on operating profitability.

Balance Sheet

The company's debt-to-equity ratio increased from 1.44 in 2020 to 2.23 in 2024, indicating higher leverage which could pose financial risks. The equity ratio has slightly declined, suggesting decreasing asset financing by equity. Despite these concerns, return on equity has improved from 4.52% in 2020 to 9.33% in 2024, showing enhanced profitability relative to shareholder equity.

Cash Flow

The free cash flow has shown volatility, with a significant drop to a negative figure in 2024. Operating cash flow was also negative in 2024, which presents a potential liquidity concern. The free cash flow to net income ratio turned negative, indicating inefficiencies in converting earnings into cash flow. This could be a risk if the trend continues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	661.89M	598.84M	569.49M	507.47M	489.00M
Gross Profit	661.89M	650.18M	569.49M	507.47M	489.00M
EBITDA	0.00	255.26M	228.71M	168.61M	109.69M
Net Income	161.58M	160.11M	141.09M	100.58M	68.80M
Balance Sheet
Total Assets	13.83B	14.05B	13.26B	12.98B	12.03B
Cash, Cash Equivalents and Short-Term Investments	505.02M	883.83M	610.36M	708.57M	986.58M
Total Debt	3.87B	6.38B	2.74B	2.62B	2.20B
Total Liabilities	12.08B	12.36B	11.66B	11.35B	10.48B
Stockholders Equity	1.73B	1.68B	1.59B	1.60B	1.52B
Cash Flow
Free Cash Flow	-223.72M	400.73M	382.38M	52.79M	158.29M
Operating Cash Flow	-191.52M	445.41M	399.95M	73.42M	205.30M
Investing Cash Flow	-50.66M	-105.85M	-17.51M	73.54M	10.32M
Financing Cash Flow	-110.34M	-85.16M	-134.69M	-83.18M	-5.00K

Banca Ifis SPA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IF, the sentiment is Positive. The current price of 22.4 is above the 20-day moving average (MA) of 21.99, above the 50-day MA of 21.98, and above the 200-day MA of 20.67, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 84.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:IF.

Banca Ifis SPA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IF	70 Neutral	€1.20B	7.28	9.47%	8.21%	9.92%	0.75%
Sector *	62 Neutral	AU$9.98B	8.06	10.79%	5.19%	32.02%	38.31%
0FP9		€108.26M	13.48	5.24%	6.71%	―	―
0O5V		€936.51M	7.65	8.39%	6.55%	―	―
0K93		€4.19B	6.09	17.03%	5.29%	―	―
1DB0		€454.62M	6.91	6.61%	―	―	―
53D		€315.72M	4.84	-7.32%	6.92%	―	―